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Image header Agence Europe
Europe Daily Bulletin No. 10764
Contents Publication in full By article 12 / 31
EUROPEAN PARLIAMENT PLENARY / (ae) social affairs

EP calls for regulations on company restructuring

Brussels, 15/01/2013 (Agence Europe) - On Tuesday 15 January 2013, the European Parliament passed a resolution calling on the European Commission to rapidly publish draft legislation “on information and consultation of workers, anticipation and management of restructuring” in a bid at EU level “to ensure that dismissals are seen as a last resort after having considered all possible alternatives, without this diminishing the competitiveness of enterprises”. While the vast majority of MEPs support the resolution (voted through by 502 to 107, with 72 abstentions), doubts by the EPP and the caution with which the Commission greeted the request suggest that all will not be plain sailing and binding legislation is unlikely any time soon.

The resolution makes 14 recommendations, all of which aim to ensure that dismissals are seen as a last resort after having considered all possible alternatives, without this diminishing the competitiveness of companies. As the rapporteur, Alejandro Cercas (S&D, Spain), argued in the debate in plenary session the day before the vote, legislation to this effect is desperately needed today. Over the past three years, for every job created in the EU, two have been lost, which reveals a “European weakness” that has to be tackled through EU legislation, in order to deal with problems that cross all borders.

The resolution calls for the introduction of a minimum set of restructuring rights and duties for companies, ensuring the right to lifelong training for workers, a requirement that companies inform trade unions of their future plans and strategies ahead of changes and involve workers and the public authorities in the management of restructuring. The recommendations include a requirement that companies come up with alternatives to redundancy, such as part-time working, renegotiation of work conditions and temporary layoffs.

During the debate, Commissioner Laszlo Andor was very cautious about the initiative, as was Veronica Lope Fontagné (EPP, Spain), speaking on behalf of the EPP. Lope Fontagné said it could be very complicated to draw up an EU system in this domain that would apply to every member state, given the sheer diversity of challenges facing each country. Andor pointed out the structural changes going on in the European economy and its labour markets, where restructuring usually equates with redundancies, highlighting the existing EU tools and the Commission proposals that have already been unveiled. He said he shared the concerns of the European Parliament, but seems disinclined to introduce legislation. He said best practice should be followed, but did not rule out the introduction of the recommendations in a Green Paper, but in a less binding manner than most MEPs would like. (JK/transl.fl)

Contents

EXTERNAL ACTION
EUROPEAN PARLIAMENT PLENARY
ECONOMY - FINANCES
SECTORAL POLICIES
COURT OF JUSTICE OF THE EU
INSTITUTIONAL
SOCIAL AFFAIRS - EDUCATION